Shares in Singapore Airlines have continued to slide following the release of disappointing results at the carrier.

Net income fell to S$44.7 million in the three months ended June 30th, well behind an analyst consensus of S$127 million and significantly below the S$253 million recorder a year earlier.

[stock]SAL|1m|right|Shares in Singapore Airlines slide following results[/stock]

Following the release, stock fell as much as 3.9 per cent, the most on an intraday basis since March 15th, recovering slightly to S$14.27 earlier.

Both the main flying unit and cargo business at Singapore Airlines posted operating losses for the period, driven largely by a 46 per cent increase in the cost of fuel.

The carrier also scaled back capacity growth plans amid “flat” bookings and competition from budget rivals.

The Singapore-based airline plans to start the new budget carrier next year – as global airlines fight back against deteriorating conditions.

Revenue for the quarter rose 3.2 per cent to S$3.58 billion from S$3.47 billion a year ago.

The airline said high fuel costs will remain its biggest challenge in the coming months.

Delta Air Lines, Air France-KLM and Lufthansa have all seen profits hit by rising fuel costs in recent months.